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ARTICLE · 03 OCTOBER 2021

Hong Kong SPACs: Five Things You Need To Know

Morrison Foerster
Morrison Foerster
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On September 17, 2021, the Stock Exchange of Hong Kong Limited (the Stock Exchange) issued a much anticipated consultation paper on Special Purpose Acquisition Companies (SPACs)

Hong KongFinance and Banking

The "SPAC"-ulation is over!

On September 17, 2021, the Stock Exchange of Hong Kong Limited (the Stock Exchange) issued a much anticipated consultation paper on Special Purpose Acquisition Companies (SPACs). It is proposed that newly-formed cash companies raising a minimum of HK$1 billion can list on the Main Board of the Stock Exchange. Here MoFo answers five key questions to bring you up to speed on the implications, opportunities, and challenges posed by the proposed Hong Kong SPAC regime.

  1. Who can promote a Hong Kong SPAC?
  2. Who can invest in a Hong Kong SPAC?
  3. When can a SPAC investor redeem its shares?
  4. What are the economics of a Hong Kong SPAC?
  5. What are some potential advantages of listing via a de-SPAC transaction vs listing via a traditional IPO in Hong Kong?

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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